{"id":255,"date":"2023-08-01T03:50:34","date_gmt":"2023-08-01T03:50:34","guid":{"rendered":"https:\/\/romanian-accountants.com\/?p=255"},"modified":"2023-10-04T13:09:00","modified_gmt":"2023-10-04T13:09:00","slug":"corporate-tax-in-romania","status":"publish","type":"post","link":"https:\/\/romanian-accountants.com\/corporate-tax-in-romania\/","title":{"rendered":"Corporate Tax in Romania"},"content":{"rendered":"\n

The corporate tax in Romania<\/strong> is mandatory for all legal persons, with some exceptions provided by the law and you should ask for a specialized accountant advice to obtain a customized calculation for the corporate tax. In this sense, our accountants in Romania<\/strong> will provide all the legislative information for paying your corporate tax in optimum time and in the conditions provided by certain Romanian rules and regulations, in accordance to your company\u2019s activity. Complete information about the corporate income tax in Romania can be provided by one of our accountants in Romania<\/strong><\/a>.<\/p>\n\n\n\n\n\t\n\t\t\n\t\t\t\n\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\t\t\t\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n\t\t\t\t Quick Facts<\/th>\n\t\t\t\n\t\t\t\t <\/th>\n\t\t<\/tr>\n\t<\/thead>\n\t
\n\t\t\t\tWho pays corporate tax in Romania<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\t– local and foreign companies with permanent establishments in Romania,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– non-resident companies with incomes generated in Romania<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\t

\n\t\t\t\t\tCorporate tax rate<\/p>\n\t\t\t<\/td>\n\t\t\t

\n\t\t\t\t

\n\t\t\t\t\t16% <\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\t

\n\t\t\t\t\tCIT for gambling and nightclubs<\/p>\n\t\t\t<\/td>\n\t\t\t

\n\t\t\t\t

\n\t\t\t\t\t5% on the revenue obtained or 16% on the taxable profit<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tCIT for micro-enterprises<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tFor those with at least 1 employee – 1%;  With no employees – 3%<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tTaxation for capital gains<\/td>\n\t\t\t\n\t\t\t\t16%<\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\tTaxation of dividends<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tNo CIT under certain circumstances<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tWho qualifies for 50% payment of CIT<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tCompanies with activities in R&D<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tPayment of corporate tax<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tQuarterly or annualy<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tDouble tax treaty protection (YES\/NO)<\/td>\n\t\t\t\n\t\t\t\tYes <\/td>\n\t\t<\/tr>\n\t\t
\n\t\t\t\tCIT exemptions<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\t– religious cults,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– foundations,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– public institutions,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– homeowners associations,<\/p>\n\t\t\t\t

\n\t\t\t\t\t– State Treasury<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tAdvance payments accepted (YES\/NO)<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tYes<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tTax exemptions for reinvested profits (YES\/NO)<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tYes<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tTax compliance and advice<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tAvailable for company owners in Romania<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tAccounting services offered (YES\/NO)<\/td>\n\t\t\t\n\t\t\t\t

\n\t\t\t\t\tYes<\/p>\n\t\t\t<\/td>\n\t\t<\/tr>\n\t\t

\n\t\t\t\tFree case evaluation (YES\/NO)<\/td>\n\t\t\t\n\t\t\t\tYes <\/td>\n\t\t<\/tr>\n
 Tax year<\/td>\n Calendar year (January 1st – December 31st)<\/td>\n<\/tr>\n
\n

 Advance tax payments<\/p>\n<\/td>\n

 Companies are required to make quarterly advance tax payments based on estimated annual income.<\/td>\n<\/tr>\n
\n

Fiscal losses <\/p>\n<\/td>\n

\n

 Companies can carry forward fiscal losses declared in the annual CIT returns for up to seven years.<\/p>\n<\/td>\n<\/tr>\n

 VAT rate<\/td>\n\n

– standard rate: 19% <\/p>\n

– reduced rate: 9% for food products, non-alcoholic beverages, medicines, and medical equipment;<\/p>\n

– further reduced rate: 5% for books, newspapers, magazines, etc. <\/p>\n<\/td>\n<\/tr>\n

Dividend tax exemption  <\/td>\n\n

If the beneficiary holds a minimum of 10% of the shares for at least one year. <\/p>\n<\/td>\n<\/tr>\n

Tax return filing deadline <\/td>\n\n

 March 25th of the year following the tax year (can be extended until June 25th for certain taxpayers).<\/p>\n<\/td>\n<\/tr>\n

Accounting standards for corporate tax in Romania <\/td>\n\n

 Romanian Generally Accepted Accounting Principles (GAAP) are followed, but International Financial Reporting Standards (IFRS) are also allowed for certain entities.<\/p>\n<\/td>\n<\/tr>\n

 Tax audits<\/td>\n\n

 Companies may be subject to tax audits by the tax authorities to verify compliance with tax regulations.<\/p>\n<\/td>\n<\/tr>\n

 Expense deductions allowed (yes\/no)<\/td>\n\n

 Yes, only if incurred for the purpose of generating taxable income.<\/p>\n<\/td>\n<\/tr>\n

 Tax deductions<\/td>\n Certain expenses, such as business-related costs, employee salaries, and contributions to pension funds, are generally deductible for tax purposes.<\/td>\n<\/tr>\n
 Tax incentives for priority sectors<\/td>\n\n

 Various tax incentives and exemptions are available for investments in specific sectors, such as manufacturing, energy, research, and development.<\/p>\n<\/td>\n<\/tr>\n

Tax identification number (TIN) <\/td>\n\n

 Companies operating in Romania must obtain a tax identification number (TIN) from the tax authorities.<\/p>\n<\/td>\n<\/tr>\n

Tax administration <\/td>\n\n

 The National Agency for Fiscal Administration (ANAF) is responsible for the administration and collection of taxes, i.e.; corporate tax in Romania.<\/p>\n<\/td>\n<\/tr>\n

Tax treaty network <\/td>\n\n

Romania has signed approximately 87 tax treaties with other countries to prevent double taxation and promote international trade. <\/p>\n<\/td>\n<\/tr>\n

 Tax incentives for startups<\/td>\nVarious incentives are available for startups, including reduced social security contributions, exemptions from certain taxes, and grants for innovation and development. <\/td>\n<\/tr>\n\t<\/tbody>\n<\/table>\n\n\n\n
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